Common repayment mistakes to avoid

1. Comparing only the monthly repayment

A longer term almost always gives a lower monthly repayment, but it can add a very large amount of total interest. Always compare monthly repayment and total interest and the term together. The loan comparison tool on the home page shows all three side by side for exactly this reason.

2. Budgeting only for today's rate

If your loan is variable, or if a fixed period will end, your rate can change. Run the calculator again at a higher rate — for example, one or two percentage points above today's rate — and check whether that higher repayment is still affordable before you commit. A buffer is cheaper than a surprise.

3. Forgetting fees and other costs

Application fees, package fees, mortgage insurance, and government charges are not in this calculator's estimate. They do not change the monthly repayment formula, but they do change the total cost of borrowing. Ask for a full cost breakdown from the lender, not just the rate.

4. Treating extra repayments as optional forever

Extra repayments have the biggest effect early, when the balance — and therefore the interest — is largest. Waiting until later in the loan to start extra repayments still helps, but it saves less than the same extra amount paid early. If you can afford a regular extra amount, try it in the extra-repayment section and look at both the interest saved and the time saved.

5. Choosing on rate alone

Rate matters, but so do flexibility, fees, offset and redraw rules, and what happens if you need to change or leave the loan early. A slightly higher rate with the flexibility you actually need can be better value than the lowest headline rate with restrictions that stop you using it well.

Estimates only, not financial advice. See the Disclaimer.

Try your own numbers in the home loan calculator — the result is an estimate, not financial advice.